Bitcoin price is currently showing positive signs above the resistance level of $26,200. It is trading above $26,000 and the 100 hourly Simple Moving Average, indicating a potential bullish momentum. On the hourly chart of the BTC/USD pair from Kraken, a connecting bullish trend line is forming with support near $26,050.
In recent trading, Bitcoin formed a base above the support zone of $25,500 and started a fresh increase above the resistance zone of $26,000. The price even witnessed a sharp spike above the $26,500 resistance zone, reaching as high as $27,212. However, there was no close above this resistance, leading to a bearish reaction. As a result, the price reversed its gains and traded below the level of $26,650.
Currently, Bitcoin is still trading above $26,000 and the 100 hourly Simple Moving Average. The price has moved slightly below the 23.6% Fibonacci retracement level of the upward move from the swing low of $24,925 to the high of $27,212. Despite this minor dip, the overall sentiment remains positive.
The hourly chart shows a bullish trend line forming, with support near $26,050. This trend line is crucial in determining the short-term direction of Bitcoin’s price.
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On the upside, the immediate resistance is located near $26,500, followed by the major resistance level of $26,650. If the price manages to close above $26,500 and breaks above $27,200, it could initiate a decent increase. The next significant resistance level to watch out for is $28,000, above which the bulls could gain more strength. In this scenario, the price may target the $28,800 level.
However, if Bitcoin fails to break above the resistance level of $26,500, it might experience a decline. The immediate support on the downside is near $26,050 and the trend line. If the price breaks below this support level, the next major support lies near $25,800. This level is also the 61.8% Fibonacci retracement level of the upward move from the swing low of $24,925 to the high of $27,212. A breakdown below $25,800 could push the price towards the key support at $25,550.
Analyzing the technical indicators, the hourly MACD is currently losing pace in the bullish zone, suggesting a possible slowing down of the bullish momentum. However, the hourly RSI (Relative Strength Index) remains above the 50 level, indicating that there is still buying pressure in the market.
In summary, Bitcoin price is displaying positive signs above the resistance level of $26,200. A close above $26,500 and a subsequent move above $27,200 could lead to further gains. On the downside, breaking below $26,050 and $25,800 might trigger a fresh drop. Traders and investors should closely monitor these key levels for potential trading opportunities.
